Update From the Field - September 2022: Main difficulties in energy storage development

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Make the most of our analysis concerning key data and trends in the energy storage industry worldwide

Description

TABLE OF CONTENTS

 

Executive summary (5)

1. New regulations and initiatives discussed this month (7)

1.1. Europe (7)

1.2. Africa (7)

1.3. North America (8)

1.4. Central America (9)

1.5. Asia (9)

2. Project updates and announcements (6)

Overview of the 2021 & 2022 market for utility-scale energy storage projects (10)

Projects announced or contracted this month (11)

Projects commissioned this month (13)

Tenders this month (15)

3. Focus of the month: Main difficulties in energy storage development (18)

3.1. BESS feasibility and design  (18)

3.1.1. Assessing future market opportunities (18)

3.1.2. Regulation changes are unpredictable and the risk associated for storage is high (18)

3.1.3. Degradation guarantee constraints must not prevent the battery to diversify applications (21)

3.2. Permitting and grid connection  (23)

3.2.1. The repermitting process must be anticipated (23)

3.2.2. Specific constraints can be imposed by insurances and local regulatory bodies (25)

3.2.3. Selecting a strategic site can make a big difference on grid connection costs (18)

3.3. Project finance  (27)

3.3.1. O&M costs can be higher than expected (27)

3.3.2. AC vs DC augmentations (27)

3.3.3. Warranty and performance guarantee contracts can be misleading and result in lower performance than expected (28)

 

 

TABLE OF FIGURES

 

Figure 1. Utility-scale energy storage projects announced/contracted and commissioned in 2021 and 2022 (ongoing) (11)

Figure 2 - Evolution of the FCR price with regards to energy storage installed capacity (MW) between 2015 and 2020 (19)

Figure 3 - Example of suggested energy sizing for power ratings according to the EAR requirements (21)

Figure 4 - Battery flexible operation vs constrained operation (23)

Figure 5 - Typical timeline for project development (24)

Figure 6 - Grid connection cost for a 10 MW connection (26)